Chandigarh: Buying small cars like Maruti-Alto or Tata Nano will cost more in Punjab following the state government's decision to levy motor vehicle tax (MVT) at a uniform rate of at 6 per cent instead of slab system.

"Those who buy two-wheelers and small cars will now have to pay more tax on buying a vehicle," a senior official in Punjab Transport Department told a newsagency on Thursday.

Punjab cabinet has done away with the slab system of imposing MVT by introducing uniform rate of tax at 6 per cent on all types of passenger vehicles including two wheelers, he added.

This move is likely to pinch two wheeler and small car buyers the most as they have to cough up more on buying their means of transportation.
The tax implication will be harsher for those who buy cars valuing less than Rs 5 lakh as their tax rate will go up threefold from 2 per cent to 6 per cent. Two per cent additional tax will be paid by two-wheelers buyers as they will pay now 6 per cent instead of 4 per cent.

However, 4 per cent MVT is levied on two-wheelers.

Punjab is considered to be the high potential market for automobile and two-wheelers industry because of rising standard of living and increasing purchasing income because of skyrocketing land prices.


(Agencies)

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